Traders buy and sell stock, currencies, bonds, cryptocurrencies and other financial assets to make a profit, usually dealing on behalf of, or for the benefit of, investment banks.
What does a trader do? Salaries | Typical employers | Qualifications and training | Skills
Financial traders use data and research to buy and sell financial assets on a short-term basis, balancing the risks involved against the potential for profit.
Typical duties include:
- researching prices and markets
- making plans for purchases and sales
- following news coverage for information about price changes
- gathering information from researchers, sales traders (traders who deal directly with clients) and other colleagues
- executing trades
- keeping notes and records
- collating reports.
Depending on the kind of work you do, you may also liaise directly with clients to understand their requirements and keep them updated on progress. You may also need to build and maintain professional relationships with new and existing clients, by presenting them with ideas that meet their requirements.
Trading offers high levels of responsibility, good promotional opportunities and impressive financial rewards including generous salaries and large bonuses. However, the hours are long and start early: research needs to be complete before financial markets open at 8.00am). The work can be stressful because high-impact decisions need to be made quickly.
Graduate salaries
According to Glassdoor, salaries for trainee or junior financial traders start at around £21,000 (you’ll likely receive a bonus on top of this). Both your salary and your bonus will rise with experience: the average salary for a financial trader is around £60,000.
Typical employers of traders
- Financial houses.
- Investment banks.
- Exchanges such as ICE Futures Europe.
- Treasury departments of major companies.
Vacancies are advertised by targetjobs and careers services. You’ll also find them advertised by financial recruitment agencies and specialist finance jobs boards.
Investment banks start recruitment very early in the academic year. Sector and company research, attending presentations, and networking are essential.
Qualifications and training required
You’ll need to be a graduate to enter this career. A degree (2.1) in any subject is required, though qualifications in economics, politics, business, financial or numerate subjects are often preferred.
This is a highly competitive field to enter so work experience will help your job applications stand out. Look for internships and vacation placements with investment banks, along with insight weeks and shorter-term events where you can meet recruiters.
Once you’re employed, you’ll need to complete further training before you can trade. Some will be on the job while some will be provided by external organisations. Employers will pay for your training, but working and studying at the same time can add to the stress of the job.
Key skills for traders
- Confidence.
- The ability to analyse data and make decisions quickly.
- Numerical skills.
- IT skills.
- Communication skills.
- An interest in financial markets.
- Analytical skills.
- Interpersonal skills.
- Teamworking skills.
Make sure to sign up to targetjobs to get all the benefits of our graduate job-hunting platform including tailored advice and job opportunities.
FAQs
Traders buy and sell stock, currencies, bonds, cryptocurrencies and other financial assets to make a profit, usually dealing on behalf of, or for the benefit of, investment banks.
What skills are needed to be a trader? ›
Trader skills in the workplace
- Discussing strategies with clients.
- Gathering information about assets and data.
- Identifying market trends.
- Completing trades.
- Sharing information about the most important or relevant trades of your day.
- Determining pricing.
- Keeping records of trades.
- Analyzing data and trends.
To become a successful day trader, you need to be willing to put in months and years of hard work to understand the markets, develop a strategy and execute your plan consistently over time. Day trading is not easy and by no means a guaranteed moneymaker.
Is trader job stressful? ›
Trading is stressful
In fact, according to Business Insider it is the second most stressful job on Wall Street, right after investment banking. And no wonder: if you are a trader, you need to make a lot of decisions and you need to make them fast. You'd also better be right as bad ones will cost you a lot.
How do I become an entry level trader? ›
How to become an equity trader
- Earn a bachelor's degree. ...
- Gain experience. ...
- Register with the Financial Industry Regulatory Authority (FINRA) ...
- Become certified. ...
- Network with other finance professionals. ...
- Apply for jobs.
The national average salary for a trader is $86,543 per year . Day trading earning potential can vary depending on whether you work for yourself, for individual investors or for a full-time employer.
Do most traders make money? ›
The vast majority of day traders lose money, reflecting the activity's risk. The factors that determine the potential upside of day trading include starting capital amount, strategies used, the markets in which you are active, and luck.
How much does a average day trader make? ›
The average Day Trader salary in the United States is $116,895 per year or $56 per hour. Day trader salaries range between $68,000 and $198,000 per year.
What is the hardest trade to learn? ›
What is the hardest trade to learn? Electrical and HVAC trades require intensive technical training, which can be difficult to learn. Electrician schools teach students how to install, maintain, and repair electrical systems.
Do 90% of traders fail? ›
Based on several brokers' studies, as many as 90% of traders are estimated to lose money in the markets. This can be an even higher failure rate if you look at day traders, forex traders, or options traders.
"If you're not producing," says Handa, "you're gone." The average professional life-span of a trader, says Handa, is from 2 to 5 years. After that, many of them end up becoming trading managers or go to a different division of the bank.
What is a typical trader personality? ›
Stock traders tend to be predominantly enterprising individuals, which means that they are usually quite natural leaders who thrive at influencing and persuading others. They also tend to be conventional, meaning that they are usually detail-oriented and organized, and like working in a structured environment.
What are the top three skills of top trading? ›
The Three Skills of Top Trading: Behavioral Systems Building, Pattern Recognition, and Mental State Management.
What makes a good trader? ›
A good trader always analyzes their closed trades to find any lessons on how they can improve. A good trader is patient and knows that there are periods when they don't need to trade. A good trader never widens a stop loss. A good trader never cancels a stop loss.
